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Esch–Cummins Act
The Transportation Act, 1920, commonly known as the Esch–Cummins Act, was a United States federal law that returned railroads to private operation after World War I, with much regulation.〔Esch–Cummins Act, Pub.L. 66-152, . Approved 1920-02-28.〕 It also officially encouraged private consolidation of railroads and mandated that the Interstate Commerce Commission (ICC) ensure their profitability.
==Background==
The United States had entered World War I in April 1917, and the government found that the nation's railroads were not prepared to serve the war effort. On December 26, 1917, President Woodrow Wilson had ordered that U.S. railroads be nationalized in the public interest. This order was implemented through the creation of the United States Railroad Administration.〔Presidential Proclamation 1419, December 26, 1917, under authority of the Army Appropriation Act, , August 29, 1916.〕 Congress ratified the order in the ''Railway Administration Act of 1918.''〔Railway Administration Act of 1918, Pub. L. 65-107, . Approved 1918-03-21.〕
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